A Modest Rise in Costs
Drives Down Aetna Shares

By

Leslie Scism Staff Reporter of The Wall Street Journal

Updated Dec. 19, 1997 12:01 a.m. ET

Renewed worries about Aetna Inc.'s health-care business sparked a 12% sell-off in the company's stock.

The drop came after the big life-insurance and health-care company told analysts that medical-insurance costs are rising "modestly" in the current quarter. The decline also reflected uncertainty about the company's big managed-care unit, Aetna U.S. Healthcare, following the announcement late Wednesday that the unit's chief financial officer was leaving. The company declined to discuss the circumstances...